5 Things You Need to Verify Before Buying Property in Dubai | ExpatWoman.com

5 Things You Need to Verify Before Buying Property in Dubai

When purchasing property in Dubai, there are certain things that are very important to verify before going ahead with the deal.

Posted on

4 April 2017

Last updated on 4 September 2017
5 Things You Need to Verify Before Buying Property in Dubai

Buying a property can be an exciting experience, especially if it’s your first home. With the high rents in Dubai, many expats find the idea of purchasing property more worth their while. As it’s an extremely important transaction, you need to ensure that everything is above board.


So here are some tips on things you absolutely need to check before finishing the sale.

1. Make sure that the seller owns the property and can legally sell it

You should ask to look over the title deed to check their name is on it and that it’s the same one on their passport.

2. Ensure that the property is free from any debts (mortgage, lien, tenancy rights, charges, etc)

This is verified through a No Objection Certificate (NOC).

SEE ALSO: How to obtain a residency visa as a Dubai property owner

3. Verify your broker’s card and confirm they’re registered with the Dubai Land Department

Every broker in Dubai needs to be individually registered through the Real Estate Regulatory Authority (RERA) and has a valid broker ID card on him. Keep a copy for your records. You can search approved agents here.

Couple with real estate agent

4. Make sure your finances are covered

Expats are only entitled to borrow up to 75% of the property’s value for the first time if they are valued at less than Dhs5 million or up to 65% if more.

Your monthly salary will also be taken into account and monthly mortgage repayments can’t exceed 35% of your income.

On top of your deposit, which is normally at least 25% of the property price, you will need to pay:

  • Agent fees – normally 2% of the purchase price
  • Property transfer fees – Normally between 1 and 7 % of the purchase price
  • Registration fees – 1.5% of the purchase price, with an extra 0.25% if you have a mortgage

5. Have the proper clauses in your Memorandum of Understanding (MOU)

The MOU document outlines the terms and conditions of a sale agreement between two parties. You would normally have to pay a small deposit at the time of signing (5%). It should at least include the following:

  • Details of the property
  • Total purchase price and terms of payment
  • Time frame to close the deal (including NOC from developer and transfer of title)
  • Consequences for failing to complete the deal